US import rebar and wire rod pricing was mostly flat as long steel importers continue to wrestle with the new reality of universal 25 percent import tariffs on steel imports from abroad, even as a developing trade war with China is likely to add to the cost and risk of shipping new steel tons as fewer and larger vessels are likely to be used to transport key imports, market insiders told SteelOrbis this week.
Insiders said following President Trump’s call for 145 percent tariffs on Chinese imports into the US and the resulting in-kind retaliation from China, a media report from CNBC indicated a growing number of importers are being notified of an increase in canceled sailings by freight ships out of China as ocean carriers try to balance the pullback in orders resulting from an escalation in trade tensions between the communist nation and the US.
While China accounted for about 30 percent of all US containerized imports in 2024, down from 37 percent in 2018, it accounts for approximately 54 percent of all US containerized imports from Asia, down from 67 percent in 2018, the report said.
“The market consensus with regard to Chinese vessels entering US ports seems to be that the Trump administration will likely give shipping companies time to adjust to the new situation on the ground, so as to avoid vessels coming out of China,” said one long steel market insider. “While there are still a fair amount of imports coming in, the total amount of steel entering the US is not likely to improve very soon.” Shipping experts say using larger cargo ships at larger ports will allow importers to spread the higher cost of shipping over a larger volume of goods, reducing overall unit cost.
On the flip side, the insider said blanket 25 percent steel tariffs are giving US mills more leverage to maintain prices near current levels, even as it appears that US finished steel pricing likely has peaked for now. Reduced so-called “panic-inspired purchasing” ahead of the start of tariffs has started to limit new steel purchases, they said. Insiders added that May ferrous scrap prices are expected to settle $20-30/gt less than those seen for April.
“In the US, demand is currently not very good,” the import insider added. “Mills are pretty much keeping their prices stable while the price of scrap continues to soften. And as imports remain modest from a mill perspective, they are unlikely to do much discounting on pricing, short of very large transactions.”
In the imported rebar markets, spot supply on a loaded truck basis at the US Gulf Coast and US East Coast remains flat amid limited US demand at $36.50-38.50 cwt. ($730-770/nt or $805-849/mt), or on average $37.50/cwt., versus $37.00-38.00/cwt. ($740-760/nt or $816-838/mt) two weeks ago. May import shipments from Egypt, Algeria and Vietnam for June-July delivery into the US Gulf Coast are last heard a bit higher at $38.00-39.00/cwt. ($760-780/nt or $838-860/mt).
The price of imported wire rod mesh on a DDP loaded truck basis moved marginally higher this week as a result of solid US demand, as insiders said the downed Liberty Steel plant still remains unproductive. Pricing rose about $0.50/cwt. ($10/nt or $11/mt) to $37.50-39.50/cwt. ($750-790/nt or $827-871/mt).
In the Mexican long steel export market, trading into the US remains quiet and slow as tariffs limit available trade options. Import rebar on a loaded truck basis vicinity Houston, Texas, from available stock is reported steady at $37.00-39.00/cwt. ($740-780/nt or $816-860/mt), though up from $36.00-37.00/cwt. ($720-740/nt or $794-816/mt) in late March.